Partners Dahl and Sullivan wish to avoid the unlimited personal liability of the partnership form of business, so they are incorporating the company as D & S Services, Inc. The charter from the state of Texas authorizes the corporation to issue 25,000 shares of 5%, $75 par preferred stock and 300,000 shares of no-par common stock. In its first month, D & S Services, Inc., completed the following transactions:
Jan 3 Issued 5,400 shares of common stock to Dahl and 4,100 shares to Sullivan, both
for cash of $8 per share.
12 Issued 1,000 shares of preferred stock to acquire a patent with a market value of
22 Issued 1,400 shares of common stock to other investors for $8 cash per share.

1. Record the transactions in the journal.
2. Prepare the stockholders’ equity section of the D & S Services, Inc., balance sheet at December 31. The ending balance of Retained Earnings is $73,000.

  • CreatedApril 29, 2014
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